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Guidelines for networks regarding departing ARs

ended 26. May 2025

In a story on FTAdviser published today about the difficulties many brokers face when seeking to leave their networks, one broker suggested it’s perhaps time for a Broker Release Council to set some guidelines that networks all agree, or are mandated, to follow. One broker, who asked to remain anonymous, said: “The idea of a Broker Release Council is a great one. Clear, consistent guidance is urgently needed for brokers transitioning between networks—whether they’re sole traders or growing firms. At present, the process is often confusing and restrictive, with little independent support. A council could help define fair practices, outline key “dos and don’ts,” and guide brokers in choosing networks suited to their needs. Most importantly, it would give brokers a voice and provide clarity at critical points in their business journey. This is a step the industry should seriously consider.” More views below.

3 responses from the Newspage community

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Daniel Hobbs
CEO at New Leaf Distribution
It’s a great idea. Whilst there will always be some pain points in switching, there will definitely be some networks that would be happy to share certain conduct rules on joiners and leavers. It’s not good for any of our reputations hearing these stories but I fear certain networks would just pay lip service to this sort of thing. For us at New Leaf, all we can do is be as fair as we can with advisers and that has fared well for us over the past 25 years.
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David Stirling
Independent Financial Adviser at Mint Wealth
The big mortgage networks often include provisos in their contracts that make any potential exit for an appointed representitive financially impossible. Large add-on expenses, for things like PI run-off, are often used as a bargaining chip to force firms to stay, while they would be much more commercially viable elsewhere. These shackles wouldn't be acceptable to the FCA under a consumer contract and should be reviewed as an unfair practice. Networks are understandably wary of firms re-writing their book and leaving a debt, but they usually have personal guarantees from the owners of these businesses in place to protect them already.
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Michelle Lawson
Director at Lawson Financial
Transitioning networks should be as easy as switching bank accounts in this day and age. Checks need to be made which most brokers will be aware of but the freezing of pipelines and such like can make a huge difference to small businesses. Making it easier to leave would make networks up their game and also will encourage more people to join a network rather than going directly authorised. As much as networks are protecting their business, the broker is also trying to protect theirs and get the right strategic and commerical outcome.